Med Spas
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 8,800 medical spas offer cosmetic medical procedures and traditional spa services under the supervision of licensed healthcare professionals. Operators provide a variety of aesthetic, minimally invasive, and non-invasive procedures that enhance physical appearance. Popular treatments include dermal fillers, neuromodulators/Botox, laser treatments, microdermabrasion, and chemical peels. Medical spas employ trained staff, such as registered nurses (RN), nurse practitioners (NP), physician assistants (PA), and aestheticians, to administer procedures.
Medical Complications
Medical procedures naturally come with some risk of complications, and those performed by nonphysician personnel in medical spas have elevated risks.
Government Regulation
Because medical spas are technically medical practices, operators are subject to regulatory oversight by state medical boards, which determine what constitutes a medical procedure, who can perform the procedure, the staffing ratio of physicians to non-physicians, and what qualifies as on-site/off-site supervision.
Industry size & Structure
The average medical spa operates out of a single location and generates almost $2 million annually, according to the American Med Spa Association. Single-location medical spas employ an average of eight workers and generate just over $121,000 annually. Multi-location operators employ an average of 16 workers at the primary facility.
- The medical spa industry consists of over 8,800 operators that employ 70,000 workers and generate about $15 billion, according to the American Med Spa Association.
- The medical spa industry is fragmented; over 80% of firms operate out of a single location. Multi-location operators average six locations.
- Two-thirds of medical spas have a single owner. Over 60% of medical spas have an owner who is not a physician.
- Large firms include Ideal Image and Laser Away.
Industry Forecast
Med Spas Industry Growth
Recent Developments
Jul 17, 2024 - Employment Increases, Wages Down
- Employment in the other personal care services industry, including med spas, increased during the first five months of 2024, according to data from the US Bureau of Labor Statistics (BLS). Average wages for nonsupervisory employees in the industry have decreased during the first five months of the year, totaling $24.68 per hour in May 2024. Med spa clients may choose more expensive treatments during periods of higher consumer spending. Consumer spending levels were up 0.2% in May 2024, from the previous month, according to the Bureau of Economic Analysis.
- A new report by CivicScience shows that Gen Z is driving growth in non-surgical cosmetic procedures such as Botox and lip fillers. Overall, facial cosmetic procedures increased 18% between 2019 and 2022, and the number of Botox injections climbed 73% during the same period. The share of US adults aged 18-24 who have had a non-surgical cosmetic treatment was 30%, more than double that of the general population, according to CivicScience data. Another 16% of Gen Z consumers have not tried non-surgical cosmetic treatments, but intend to, compared to 9% of the general population who intend to try the treatments. Per the report, Gen Z has grown up in an age of changing beauty standards, influenced by social media and a desire for aesthetic perfection. Adults aged 55 and over are the least interested in non-surgical cosmetic treatments, per the report.
- Consumer confidence levels fell in June 2024, after an uptick in May, according to data from The Conference Board. The Conference Board’s consumer confidence index was 100.4 in June 2024 from 101.3 in May 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those under age 35 and those in the income category of over $100,000. Plans for large appliance and smart phone purchases rose on a six-month basis, while plans for car purchases stalled.
- Automated or touchless wellness treatments are playing a bigger role in spa services, as client preferences shift and labor shortages continue, according to a recent report in Wellspa 360. The touchless options can accommodate customers who have expressed a heightened aversion to being touched and prefer treatments that provide relaxation without the need for hands-on manipulation. Spas are also adding automated wellness services to expand offerings during prevailing labor shortages and heightened demand for spa services. Touchless wellness treatments may include therapeutic baths, automated facials, hydrotherapy massage chairs, LED light pods, salt room therapy, cryotherapy, acoustic therapy, and infrared saunas. At the Carillon Miami Wellness Resort, the spa’s “touchless wellness options” include its popular Wellsystem Wave Massage, using dry water massage, and its ReLounge Wave Mat, using electrostimulation and heat therapy.
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